Nowadays, with the diffusion of inflation targeting, the main instrument that central banks use to achieve final … objectives in the implementation of monetary policy (concerning inflation and unemployment) is the interest rate. Furthermore …. As inflation, unemployment and interest rates are determinants of the level of poverty, the central bank's behaviour is …

Low price inflation is an official monetary policy target in many countries because of the positive effects it may … generate on economic growth. However, if nominal wage rigidities exist, low price inflation may have a negative effect on … economic growth. In this paper we test whether there exists a minimum level in the wage inflation ratefor a number of European …

Low price inflation is an official monetary policy target in many countries because of the positive effects it may … generate on economic growth. However, if nominal wage rigidities exist, low price inflation may have a negative effect on … economic growth. In this paper we test whether there exists a minimum level in the wage inflation ratefor a number of European …

There is a long literature examining the theoretical relationships between the rate of inflation and the size of the … capital stock in an economy. This literature has produced varied predictions about the effects of inflation on the capital …

We investigate theoretically and empirically the competitive effects of increased trade on prices, productivity and … and significant impact on sectoral prices. Increased openness lowers prices by both reducing markups and raising … productivity rises in a manner that increases over time. Our estimates suggest that EU manufacturing prices fell by 2 …

power parity relation. An exchange rate pass-through equation is estimated, and it is seen that the rate of inflation is … affected largely by the pass-through effects from exchange rate changes and the world rate of inflation. …

may in some cases increase the rate of inflation - not only in the end, but even from the start. I show that this … "spectacular" result ceases to hold if the central bank is restricted always to choose the lowest final inflation rate. On the …

By driving a wedge between the marginal returns to real and financial capital, inflation distorts production. The … approximately proportional to the square of the original inflation distorsion. …

We demonstrate the existence of a monetary policy tradeoff between price-inflation variability and output … the special case in which prices are sticky and wages are perfectly flexible. When the model is calibrated to exhibit an … empirically reasonable degree of nominal wage inertia, strict inflation targeting induces substantial output-gap volatility. …